SECTIONS 18400-18413 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 18400-18413

18400. This chapter may be cited as the Automobile Dealers
Anti-coercion Act.

18401. The provisions of this chapter are cumulative of each other
and of any other provision of law relating to the same subject in
effect September 15, 1935.

18402. As used in this chapter:
(a) "Person" means any individual, firm, corporation, partnership,
limited liability company, association, trustee, receiver or
assignee for the benefit of creditors.
(b) "Sell," "sold," "buy," and "purchase" include exchange,
barter, gift, and offer of contract to sell or buy.
(c) "Manufacturer" means (i) any person who is engaged, directly
or indirectly, in the manufacture of motor vehicles, and (ii) any
other person directly or indirectly owned by him who is engaged in
the sale or distribution of motor vehicles or any interest therein at
wholesale.
(d) "Retailer" means any person who is engaged or who intends to
engage in the business of selling motor vehicles at retail in this
state.
(e) "Lender" means any person other than an automobile dealer or
automobile distributor who is engaged in the business of financing
the purchase or sale of motor vehicles or of buying conditional sales
contracts, chattel mortgages or leases on motor vehicles sold at
retail within this state.

18403. It is unlawful for a manufacturer to sell or contract to
sell motor vehicles to a retailer on the condition or with an
agreement or understanding, either express or implied, that the
retailer shall finance the purchase or sale of motor vehicles only
with or through a designated person or class of persons or shall sell
and assign the conditional sales contracts, chattel mortgages or
leases arising from the sale of motor vehicles only to a designated
person or class of persons, when the effect of the condition,
agreement or understanding so entered into may be to lessen
competition, or tend to create a monopoly in the person or class of
persons designated.

18404. Any threat, express or implied, made to a retailer by a
manufacturer that the manufacturer will cease to sell, or refuse to
contract to sell, or will terminate a contract to sell, motor
vehicles to the retailer, unless such retailer finances the purchase
or sale of motor vehicles only with or through a designated person or
class of persons or sells and assigns the conditional sales
contracts, chattel mortgages, or leases arising from his retail sales
of motor vehicles only to a designated person or class of persons is
prima facie evidence that the manufacturer has sold or intends to
sell motor vehicles on the condition or with the agreement or
understanding prohibited by this chapter.

18405. Any threat, express or implied, made to a retailer by any
person, or any agent of any such person, who is engaged in the
business of financing the purchase or sale of motor vehicles or of
buying conditional sales contracts, chattel mortgages or leases on
motor vehicles in this State and is affiliated with or controlled by
a manufacturer that such manufacturer will terminate his contract
with or cease to sell motor vehicles to such retailer unless such
retailer finances the purchase or sale of motor vehicles only with or
through a designated person or class of persons or sells and assigns
the conditional sales contracts, chattel mortgages or leases arising
from his retail sale of motor vehicles only to such person so
engaged in financing the purchase or sale of motor vehicles or in
buying conditional sales contracts, chattel mortgages or leases on
motor vehicles, shall be presumed to be made at the direction of and
with the authority of such manufacturer, and is prima facie evidence
that the manufacturer has sold or intends to sell the motor vehicles
on the condition or with the agreement or understanding prohibited by
this chapter.

18406. It is unlawful for any manufacturer to pay or give or to
contract to pay or give any subsidy to any lender or to discriminate
in favor of or against any lender if the effect of any such subsidy
or discrimination may be to lessen competition or tend to create a
monopoly in the person or class of persons who accepts the subsidy or
who are benefited by the discrimination.

18407. It is unlawful for any lender to accept or contract or agree
to accept either directly or indirectly any subsidy or the benefit
resulting from any discrimination made unlawful by this chapter from
any manufacturer if the effect of the acceptance of any such subsidy
or benefit may be to lessen competition or tend to create a monopoly
in the person or class of persons who accepts such subsidy or who is
benefited by such discrimination.

18408. It is unlawful for any person other than an automobile
dealer or automobile distributor who accepts either directly or
indirectly any subsidy or the benefit resulting from any
discrimination made unlawful by this chapter or contracts either
directly or indirectly to accept any such subsidy or benefit to
finance or attempt to finance the purchase or sale of any motor
vehicle or buy or attempt to buy any conditional sales contracts,
chattel mortgages or leases on motor vehicles sold at retail in this
State thereafter.

18409. Any contract or agreement in violation of the provisions of
this chapter is void and is not enforceable at law or in equity.

18410. Upon a violation of this chapter by any corporation or
association the Attorney General or the district attorney of the
proper county shall institute proceedings in any court of competent
jurisdiction for the forfeiture of charter rights, franchises or
privileges and powers exercised by such corporation or association,
and for the dissolution of the corporation or association.

18411. Every foreign corporation or association, exercising any of
the powers, franchises or functions of a corporation in this State
which violates this chapter, is hereby denied those powers,
franchises or functions and is prohibited from doing any business in
this State. The Attorney General shall enforce this provision by
bringing proper proceedings. The Secretary of State may revoke the
license of any such corporation or association heretofore authorized
to do business in this State.

18412. (a) Any person who violates this chapter, any person who is
a party to any agreement or understanding, or to any contract
prescribing any condition prohibited by this chapter, any employee,
agent or officer of any such person who participates in making,
executing, enforcing, performing or in urging, aiding or abetting in
the performance of any such contract, condition, agreement or
understanding, any person who pays or gives or contracts to pay or
give any thing or service of value prohibited by this chapter, and
any person who accepts or contracts to accept any thing or service of
value prohibited by this chapter, is guilty of a misdemeanor.
(b) Each day's violation of this provision constitutes a separate
offense.

18413. (a) In addition to the criminal and civil penalties herein
provided, any person who is injured in his business or property by
reason of anything declared to be unlawful by this chapter may sue
therefor in any court having jurisdiction in the county where the
defendant resides or is found, or any agent resides or is found, or
where service may be obtained, without respect to the amount in
controversy, and recover twofold the damages sustained by him, and
the costs of suit.
(b) Whenever it appears to the court before which any proceedings
under this chapter may be pending, that the ends of justice require
that other parties be brought before the court, the court may cause
them to be made parties defendant and summoned, whether or not they
reside in the county where such action is pending.